Egbin Power Plant bemoans N1.4 trillion in FG debt and gas shortage

According to Mokhtar Bounour, the CEO of Egbin Power Plc, the current gas scarcity is causing the company to lose a significant amount of income and endangering the nation’s ability to generate electricity.

Bounour made this statement on Thursday while speaking to reporters at the Egbin Power Plant in Ikorodu, Lagos, following his meeting with Adebayo Adelabu, the Minister of Power.

The CEO stated that the limited supply of gas has prevented the power generating firm from operating the plant to its maximum potential.

He claims that the plant, which has the capacity to produce 1,000 MW, only produces 400 MW on average these days due to gas shortages.

During the discussion with the minister behind closed doors, Bounour stated that the management had brought up every issue, adding, “They promised to solve them gradually so we can see improvement in the near future.”

He said, “One of the major challenges we are facing right now is gas availability.

“We don’t have enough gas to run the full capacity of the plant, and we are losing a lot of revenue.

“This is a 40-year hold plant, we are investing a lot; it requires a lot of effort, a lot of investments to keep the unit running and safe; and if you don’t generate, you will have a big unbalance.

“The quantity of gas allocated to us is not enough to run the six units. We have received calls from the gas suppliers that they have some technical challenges to sort out. We hope we can receive a good quantity of gas as soon as possible.”

He went on to say that the Federal Government owes the GenCo N1.4 trillion.

“The second challenge is the cumulative debts. We are having some liquidity issues that we all hope will be solved soon.

“The Federal Government is owing us N1.4tn, but the minister has promised that starting from April, we will start seeing improvements, and we are looking forward to it. If the debts are not paid, the business can’t be sustained,” he stated.